|A traffic jam in Phan Dinh Phung road, Binh Thanh District, HCM City. Ten years ago, HCM City's People's Committee decided to build five flyover roads by 2020, but negotiations with potential investors have stalled in recent years. — Photo tuoitre.vn
HCM CITY (VNS) — Ten years ago, HCM City's People's Committee decided to build five flyover roads by 2020, but negotiations with potential investors have stalled in recent years.
Prime Minister Nguyen Tan Dung approved the flyover plan in 2007, and the city then called for investors to bid for the projects.
In December 2007, the South Korean GS E&C Company signed a Memorandum of Understanding with the city on project feasibility of the first flyover route under the BOT (build-operate-transfer) investment mode.
It was planned to be 9.5 kilometres long with four lanes, with a maximum speed of 80 km per hour for vehicles.
But in mid-2008, the company said the project would cost US$340 million, and road-toll collections would only pay for only 20-30 per cent of the costs.
The project was suspended in 2009 after the city refused to change the model to BT (Build-Transfer) mode or another investment mode, which had been requested by the South Korean company.
In 2009, the Viet Nam Urban and Industrial Zone Development Investment Corp proposed building a flyover route from Thu Duc intersection to An Lac intersection with a length of 34km.
The developer suggested a width of 45 metres with total investment of VND36.7 trillion ($1.62 billion).
But the city wanted the road to be 120 metres wide, which would have increased the costs to VND74 trillion ($3.28 billion). The investor then turned down the project.
Also in 2007, General Construction Company No. 1 proposed building a flyover route from Binh Phuoc intersection, passing over Sai Gon River – Vuon Lai – Nguyen Xi– Dinh Bo Linh – Dien Bien Phu streets and connecting to the first flyover road. This flyover would be 9.6 kilometres, with a total investment of VND14 trillion ($621.18 million).
Hoang Trung Thanh, deputy director of the company, said the company had negotiated with the city four or five times for a total investment of VND14 trillion.
General Construction No. 1 said it wanted the city to cover VND7 trillion ($310.59 million) for site clearance compensation, and the rest would be paid by the company.Thanh said the project would be discussed again next year. — VNS